Farfetch continues to face criticism after its surprise takeover by the South Korean company Coupang. The Neiman Marcus Group (NMG) is now said to have terminated its ongoing partnership with the online luxury retailer.
According to reports from industry magazine Business of Fashion (BoF), NMG has halted plans to use Farfetch’s e-commerce software for fashion house Bergdorf Goodman. Bergdorf Goodman had originally prepared to integrate the technology for its online storefront and app. In addition, the company will no longer join the Farfetch marketplace.
The duo first began working together in 2022 when Farfetch invested $200 million in NMG to integrate its e-commerce technology, Farfetch Platform Solutions, into the online offering of the group’s department store Bergdorf Goodman.
However, Fartech will remain involved in NMG as a minority shareholder, Business of Fashion said. They are currently in the process of expanding their own e-commerce technology.
Last week, as Coupang’s acquisition of Farfetch closed, there was a backlash against the $500 million deal in the form of a group of disgruntled investors who raised concerns about the seemingly “distressed sale.”
Farfetch shareholders, who hold over 50 percent of the company’s 3.75 percent convertible bonds, had described the move as “value destruction” after the company’s financial situation inexplicably deteriorated.
As a result, shareholders in the Cayman Islands have filed a petition for the winding up of Farfetch, which includes the appointment of an administrator and an investigation into the conduct of Farfetch founder José Neves.
This translated post previously appeared on FashionUnited.com